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A servicer handles borrower funds and servicing reports for NC loans. What is the best conclusion under North Carolina MLO law or NCCOB guidance?

Correct Answer

D) NC servicers must safeguard borrower funds, follow reasonable borrower instructions, act with reasonable skill, care, and diligence, file required reports, and comply with applicable federal servicing duties.

NC servicers must safeguard borrower funds, follow reasonable borrower instructions, act with reasonable skill, care, and diligence, file required reports, and comply with applicable federal servicing duties. North Carolina mortgage loan servicers must safeguard and account for borrower funds, follow reasonable borrower instructions, act with reasonable skill/care/diligence, file required reports, and comply with applicable federal laws.

Answer Options
A
Treat consumer consent as a cure for a prohibited or missing compliance step.
B
Treat the timing or filing requirement as optional if the transaction appears low risk.
C
Assume the North Carolina requirement does not apply to this advertising approval.
D
NC servicers must safeguard borrower funds, follow reasonable borrower instructions, act with reasonable skill, care, and diligence, file required reports, and comply with applicable federal servicing duties.

Why This Is the Correct Answer

NC servicers must safeguard borrower funds, follow reasonable borrower instructions, act with reasonable skill, care, and diligence, file required reports, and comply with applicable federal servicing duties. North Carolina mortgage loan servicers must safeguard and account for borrower funds, follow reasonable borrower instructions, act with reasonable skill/care/diligence, file required reports, and comply with applicable federal laws.

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